The world’s self-proclaimed “first distributed solar utility,” Principal Solar, is set to go public this week with a public offering of up to 2.8 million shares.
The company is looking to raise $26 million by selling up to 2.8 million shares, and is also looking to develop 500 MW of solar PV projects in Texas.
The estimated price range for the initial public offering is expected to be between $9.00 to $11.00 per share of common stock, after a 1:4 reverse split effected on May 6.
According to documents filed with the Securities and Exchange Commission on May 21, one of the primary uses for the cash raised through the 2.5 million share offering (plus another option of purchasing 375,000 thousand shares for $3.7 million) is to acquire the minority interest in the company’s subsidiary, Powerhouse One, repay debt, fund potential acquisitions and project financing, redeem preferred stock, and increase its capitalization and financial flexibility.
In addition to the funds raised through the public offering, Principal Solar laid out why additional financing is necessary:
“In addition to proceeds from this offering, we need approximately $158 million in project financing required to build and operate the solar project PS IV which we expect to cost approximately $164 million, and we need an additional amount of approximately $145 million to build and operate PS V, which we expect to cost approximately $153 million.”
Principal Solar will be listed as PSWWD until the 25th of June, before reverting to its official PSWW symbol on the NASDAQ.
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